INTRODUCTION

The team conducted an audit on College Student Government (CSG) Finance Committee
particularly on the purchasing process.

The purchase of certain commodities and services may be done through a competitive bidding.
The Finance Officer is mandated to attached the corresponding documents to support the accuracy of
the bidding. A purchase that has been made without a prior issuance of an approved Purchase Request
is considered void.

SYSTEM OVERVIEW

On the disbursement process the following procedure has to be done.

 Approved letter
 Purchase Request
 Request for Quotation
 Abstract of Quotation
 Purchase order
 Disbursement voucher
 Releasing of checks
 Encashment
 Official receipts

SCHEDULED DATES

The team will execute the engagement starting January 14, 2019 to January 15, 2019.
1.0 GENERAL INFORMATION

1.1 PURPOSE

The purpose of this audit is to evaluate the adequacy of the internal control environment
related to purchasing and disbursement , and to determine that purchasing and disbursement were
being made in accordance with governing policies and procedures.

We conducted this performance audit in accordance with generally accepted government

auditing standards. Those standards require that we plan and perform the audit to obtain sufficient and
appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit
objectives. We believe that the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.

1.2 SCOPE

The scope of the audit is to know if there is a sufficient control in the process of purchasing and
disbursement needed by the Campus Student Government (CSG).

1.3 SYSTEM OVERVIEW

On the disbursement process the following procedure has to be done.

 Approved letter to be signed by the Campus Executive Officer with the attached budget
proposal.
 Purchase Request includes the items to be purchased with budgeted per unit cost and total cost
of every quantity.
 Request for Quotation must have at least 3 bidders.
 Abstract of Quotation is a summary of canvass with the actual amount that is prepared by the
Bids and Awards Committee
 Purchase order is a document that consist of lowest bidder which is prepared by the finance
department
 Disbursement voucher is where the processing of the amount intended for releasing the checks.
 Releasing of checks they must see to it that it is addressed to the payee.
 Encashment it is the duty of the payee to encash the checks.
 Official receipts are given to Finance Department by the different heads of the committee

1.4 PROJECT REFERENCES

2.0 AUDIT PROCESS

2.1 Type of Internal Audit

The auditor undergone operational audit; a review of how an organization's management and its
operating procedures are functioning with respect to their effectiveness and efficiency in meeting
stated objectives

2.2 Internal Audit Subject

The internal audit subject focuses on the purchasing and disbursement process of the CSG.

2.3 Roles and Responsibilities

The CSG is composed of governor, vice governor and 8 board members which were elected by
the students. And the elected officers will select their own appointee. The governor is
responsible in making the purchase order, signing necessary documents and everything. If the
governor is not around, the vice governor will act on her behalf. The appointed Finance
Committee is responsible in making financial statement, purchase request and purchase order.
The Bids and Awards Committee is responsible in making abstract of quotation, request of
quotation and awarding.

2.4 Method of Internal Audit

The audit method included identifying purchasing risks, interviewing key personnel and
reviewing support documentation to verify compliance with applicable regulations and policies.

2.5 Schedule
During the duration of the engagement, the audit team was divided into two groups; Team A
and Team B.

The team A was assigned in the audit plan. They incorporated the different procedures that will
be done by the Team B and also the nature, extent and the timing of the control test.

The Team B was able to do the field work in internal auditing. They conduct interviews to key
personnel to gather the necessary information. They also collect the essential documents that
will be needed to validate if the policies and procedures are strictly followed.
3.0 EVALUATION

3.1 Strategy

The Internal Audits strategy used, which will result in a successful audit.

3.2 Metrics
The Internal Audits will be measured through Effectiveness indicator, this is the
relationship between the expected results and the obtained results: the best way to do that
is = achieve the expected results.

Efficiency is the relationship between the results achieved, and the resources used =
making things the best way using the least amount of resources.